ELM Elementis Plc

 
TIDMELM 
 
27 April 2016 
 
AGM / Interim Management Statement 
 
Elementis plc (ELM.L, the "Company" or the "Group"), the Global Specialty 
Chemicals Company, today issues its Interim Management Statement for the three 
months ended 31 March 2016. 
 
Commenting on the Company's performance Group Chief Executive, Paul Waterman, 
said: "During my first two months at Elementis I have been impressed by the 
quality of our people and the resilience of our business model. This is best 
exemplified by the sustained level of contribution margins in Specialty 
Products, the relative stability of the Chromium business in North America and 
the Group's strong cash generation. Although some markets continue to be 
challenging and we are cycling against a stronger first quarter in 2015, we are 
proactively managing our margins and cost base to ensure that our performance 
for the year remains in line with management expectations." 
 
In Specialty Products, sales performance in coatings and personal care was 
satisfactory, while currency and lower oilfield sales resulted in total sales 
being 7 per cent below the same period last year. The following comments by 
division refer to constant currency sales: 
 
  * In coatings additives, sales in North America were similar to the previous 
    year as sales of decorative products from the New Martinsville plant 
    continued to make good progress, while industrial sales remained subdued 
    due to the impact of the stronger dollar on consumer exports, as previously 
    reported. Sales in Europe were 1 per cent higher, while sales in Asia 
    Pacific were 1 per cent lower, following the destocking and adjustment that 
    took place in the Chinese economy in the second quarter of 2015. Sales to 
    Latin America represent 5 per cent of total coatings sales and were 9 per 
    cent lower than the previous year due to economic weakness in that region, 
    particularly in Brazil. 
 
  * In personal care, sales were 4 per cent higher than the previous period, as 
    the business continued to benefit from geographic expansion and new product 
    sales. 
 
  * Sales in oilfield drilling were broadly in line with the quarterly sales 
    run rate experienced in the second half of 2015, following the sharp 
    downturn in North American demand that took place in the early part of 
    2015. Consequently, sales for the current quarter were 37 per cent below 
    the same quarter last year. 
 
As anticipated, Chromium sales for the first quarter were 11 per cent lower 
than the previous year, as market conditions outside of North America continued 
to be challenging. Although sales in North America were lower by 5 per cent, 
this is largely due to order timing and sales for the first six months of the 
year are expected to be in line with the same period last year. Sales outside 
of North America were 19 per cent lower than the previous year, with volumes 
lower by 6 per cent and pricing lower by 13 per cent. 
 
The Group's balance sheet remains strong and is again expected to be in a net 
cash position at the end of the year which, under our dividend policy, will 
continue to provide shareholders with attractive returns. 
 
                                     ENDS 
 
Enquiries: 
 
Elementis                                                        + 44 (0) 207 067 2999 
Paul Waterman, Chief Executive 
Brian Taylorson, Finance Director 
 
FTI Consulting                                                   + 44 (0) 203 727 1000 
Deborah Scott 
Matthew Cole 
 
 
 
END 
 

(END) Dow Jones Newswires

April 27, 2016 02:00 ET (06:00 GMT)

Elementis (LSE:ELM)
Historical Stock Chart
From Mar 2024 to Apr 2024

Elementis (LSE:ELM)
Historical Stock Chart
From Apr 2023 to Apr 2024